Investing for Dummies

amother

Sun, Oct 13 2024, 6:33 pm

Is there a point in starting an investment account where I would only be adding a few hundred dollars a month? Can I take some small steps without an advisor?
Chase website gives me an option of opening a general investment account, IRA or Roth IRA. Would anyone be able to tell me if any of those are worthwhile? What about mutual funds, how do I access those?

StylishTichel

Sun, Oct 13 2024, 6:44 pm

amother OP wrote:

Definitely worth it to invest even just a couple hundred a month. Over a long time compounding interest will make it grow. Open a RothIRA. This way your money can grow tax-free (until you take it out). Within your RothIRA you can invest in various ways. The simplest way is by investing in the S&P 500 (which is an index fund that has been proven to have a ln average rate of 7% per year of compounding interest).

amother

Crimson

Sun, Oct 13 2024, 6:54 pm

StylishTichel wrote:

Keep in mind IRA and Roth IRA - you can only withdraw once you are 65 or you’ll incur penalties.

If you need the money earlier go with a regular investment account

You can do some and some

It’s very worth it.

amother

Iris

Sun, Oct 13 2024, 6:56 pm

Do you have access to stock news and news in general? I ask because right now there is a big shortage of Ozempic because lots of ordinary people are getting prescriptions to lose weight. I see lots of empty boxes of Ozempic in the garbage room of my apartment building. Ely Lilly will be coming out with their own version of this weight loss drug in 2025.

Do you know how to read a stock chart? Just type in name of stock into google. "Ely Lilly stock"
Click on YTD, year to date, to see how it performed this past year. Past performance is not an indication of future performance. This is why you need to follow the news and pay close attention to the world around you.

Many investors feel that right now, Ely Lilly is a good buy. However, in another year, it may settle down. You have to keep reading the news.

Also, you buy for the long haul. In the short term, it can go up one day and down the next. But over the long term, it should go up. But this company, as far as I can tell, is only a buy for the current year. Every year, you need to keep reading the news.

amother

Aconite

Sun, Oct 13 2024, 7:01 pm

amother Iris wrote:

I would strongly recommend that a new investor not buy individual stocks. There's too much to lose and it's too complicated. But a standard whole market mutual fund is a good, safe place to start.

As is the book investments for dummies, incidentally